Kuwait Energy reports 52pc rise in Q2 revenue

Kuwait, August 12, 2013

Kuwait Energy, an independent oil and gas exploration and production company in the Middle East, has reported a revenue of $77.6 miilion, up 51.8 per cent in its second quarter, as compared to the same period in 2012.

The company’s production increased by 37.3 per cent year-on-year, to 23,221 boepd, as compared to 16,906 boepd in the same period last year.

Increases in revenue and production were primarily due to the new contributions from the Shahad SE field in ERQ, Egypt and the company’s 15 per cent interest in Block 5, Yemen, said a statement.

Increased production was also recorded at wells Yusr-38 ST and Yusr-60 in Area A, Egypt, it said.

The short term debt facility availed with Kuwait International Bank for $25 million was repaid during the quarter and a new short term facility of $15 million was established with Qatar First Bank, said the statement.

The company has also drawn $110 million from its reserve based lending facility of up to $165 million with the International Finance Corporation and Deutsche Bank, which is in place to finance near-term capital activities, it said.

Sara Akbar, CEO, said: “The second quarter of 2013 has been a phenomenal success from a revenue perspective as we recorded outstanding year-on-year increases. Our recent acquisition in Yemen continues to contribute material levels of production whilst new production coming in on stream in Egypt also has provided welcome momentum.”

During the quarter, the company withdrew from the consortium negotiating Exploration and Production Sharing Contracts (EPSC) for hydrocarbon exploration licences for Block I (Sanduqli) and Block IV (Mazar-i-Sharif) in the second Afghanistan Bid Round, Akhar added.

Wells Shahd-3 and Shahd-SE6 in ERQ, Egypt were successfully completed and put on production at initial gross rates of 4,300 bopd and 4,800 bopd, respectively. Three exploration wells were drilled, two of which are in Egypt and one in Latvia, said the statement. - TradeArabia News Service